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Topic: A ripple in the waters? (Read 10201 times)

The Bank of England regulation authority announced this morning that one of the leading high street retail banks (Co-op Bank Plc) is to place itself up for sale.

Apparently, the bank has been unable to meet the equity reserve requirement of 10% in their attempt to raise capital from new or existing investors.

In the event (not, wholly unforseeable) that no buyer is found, there are suggestions that another large banking concern (Royal Bank of Scotland or RBS) may also be in some difficulties. This latter event could almost certainly present a 'domino' moment of panic, wholesale guarantees of underwriting EVERYTHING and, of course, bank runs here.

It is recently revealed that Royal Bank of Scotland/Natwest (RBS) Group, one of the UK banking 'big four' has in fact been haemorrhaging £735,500.00 ($867,000.00) every HOUR since the financial crisis of 2008 and a UK Government bailout. Despite massive staff cuts and branch closures, the bank has lost over $8 billion last year.

An attempt to hive off a further 300 branches to another bank has fallen through - as it has become clear that the new 'stand-alone' bank that they intended to create would not be able to survive.

All this time, during which RBS share price has dropped 97% from their peak in 2007, the bank, which remains 71.5% UK government owned, last year paid out £343 million in bonuses.

Imagine, for one moment, a ship-building, car or truck manufacturing or mining concern clocking up more than £50 billion in losses over the past seven years at the expense of the ordinary tax-payer? Just wouldn't happen, would it?